Understanding The Trust and Transparency Economy
The term Bitcoin is often described to mean the same as Blockchain. But they are not. Bitcoin is a virtual currency among many other cryptocurrency, while Blockchain is a technology, the foundation of cryptocurrency.
The Blockchain as a decentralized economy exists on the core principles of reliability, accessibility, underway, and validation. These principles give an overview why blockchain is regarded as a trust and transparency economy.
In a trust and transparency economy, users at both can be sure that their transactions are safe and encrypted, they can have access to their coins at any time, and their transactions can be approved without signing on paper.
In the present day economy, Mr. A sends money to Mrs. B through an intermediary, like the local bank. But there are instances where the intermediaries between Mr. A and Mrs. B are more than one, and in this case, there are many paperworks involved, and at some point the transaction fails, it breaches the trust between the user and the intermediary. So how do we fix this trust dilemma? Hello there, welcome to the trust and transparency economy, Blockchain.
Using the analogy above, you can be sure that blockchain is here to fix trust and transparency. The interesting thing about the blockchain economy is that it has an incentive structure not to cheat, but to play by the rules, while eliminating the need for intermediaries.
How Does This Trust Work?
Blockchain relies on Machine-based trust. As humans, we have feelings, believes, and past experiences that influence our decisions and reactions. But technology on the other side takes in facts, figures, and data to make decisions. And that's what machine-based trust is all about. So while transactions and validations are ongoing at the same time, blockchain translates this transparency into trust.
We have to keep in mind that we are moving into a decentralized network, and it's happening really fast, whether we want it or not.